More trouble for IndiGo: Regulator examining if India’s largest airline violated competition norms

The IndiGo crisis this month troubled lakhs of passengers across the country. The flight cancellations, in thousands, were blamed largely on the Flight Duty Time Limitation (FDTL) norms that were fully enforced starting November 1 this year by the aviation regulator, the DGCA.

IndiGo, which is India’s largest airline, was blamed for failing to plan and prepare in advance and hire the required crew and pilots to meet the new stringent FDTL norms.

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One airline’s troubles became a national aviation crisis primarily because IndiGo has grown into a near monopoly in the Indian skies. It accounts for over 60 per cent share in air travel in India, and has a complete monopoly over nearly half the routes on which planes fly in the country.

As per data available, IndiGo operates on a whopping 79.6 per cent of all routes in India (900 of 1,131 sectors). And of these 900 routes, 514 are ones on which no other airline flies, and IndiGo has a complete ‘monopoly’.

MUST READ: How IndiGo crisis triggered the monopoly-duopoly charge

Now, in view of the crisis that made global headlines, the competition regulator, the Competition Commission of India (CCI), has reportedly started examining whether IndiGo violated competition norms.

A news agency reported that the CCI has launched an internal inquiry to check whether IndiGo violated norms and abused its ‘dominant’ position.

The development has come amid increased scrutiny of IndiGo’s operations, especially concerns that the airline’s dominant position contributed to the crisis.

The report said, quoting an official, that the CCI would examine several aspects, including the overall dominant position of the airline, its dominance in particular sectors (routes), and whether the company willfully abused its dominant position.

The CCI has taken up the case suo motu, and no formal complaint has been received by the regulator against IndiGo so far.

Following the crisis, the Opposition had sought to corner the Union government over the issue, alleging the airline was allowed to grow into a behemoth.